International Financial Services Centre (IFSC) in a SEZ proposed

By Accommodation Times News Services

Development of SEZs
As per Section 18 of the Special Economic Zones (SEZs) Act, 2005 the Government may approve the setting up of an International Financial Services Centre (IFSC) in a SEZ. The Central Government may prescribe the requirements for setting up and the terms and conditions of the operation of Units in an IFSC, subject to such guidelines as may be framed by the Reserve Bank, the Securities and Exchange Board of India, the Insurance Regulatory and Development Authority and such other concerned authorities, as it deems fit.

All SEZs, including SEZs providing financial services, established under the provisions of the SEZ Act, 2005 and Rules framed thereunder and amendments notified thereon from time to time are eligible for the fiscal concessions and duty benefits as provided under the SEZ Act and Rules.

As per Rule 53 of SEZ Rules, 2006, a SEZ unit is under an obligation to achieve positive Net Foreign Exchange (NFE) earnings to be calculated cumulatively for a period of 5 years from the commencement of production, failing which the units shall be liable for penal action under the provisions of the Foreign Trade (Development and Regulation) Act, 1992. The total exports from the SEZs during the last seven years and the current financial year are as under:

Financial Year Exports from SEZs

(Value  in Rs. Crore)

2006-2007 34,615
2007-2008 66,638
2008-2009 99,689
2009-2010 2,20,711
2010-2011 3,15,868
2011-2012 3,64,478
2012-2013 4,76,159
2013-2014* 1,13,299

*for the period April-June, 2013

The information was given by the Minister of State in the Ministry of Commerce and Industry Dr. D. Purandeswari, in a written reply in Lok Sabha

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